Mining Stocks That Deserve Your Attention: Vale SA (ADR) (NYSE:VALE), Barrick Gold Corporation (USA) (NYSE:ABX), Alcoa Inc (NYSE:AA)

Boston, MA, 02/19/2014 – Vale SA (ADR) (NYSE:VALE) which is a Brazilian metals and mining company has informed the conclusion of the debentures issuance. The company raised the issuance from R$750 million as was initially declared to R$1 billion due to the high demand for the investment instrument. In a press release, the company stated that the instruments will be updated based on factors such as inflation and that they will also bear annual interests featuring different pricings. It also emerged from the news release that almost 90 percent of the debentures offering was allocated to retail investors. The Standard & Poor Ratings Services rated the debentures as brAAA, Fitch Ratings termed them AAA(bra) and Moody’s Investor Services rated the instrument VALE announced that the net proceeds from the debenture offer will be invested in infrastructure projects. Shares of Vale SA (ADR) (NYSE:VALE) concluded the previous session at $14.47 after losing 19 cents or 1.3 percent of their market value.

Barrick Gold Corporation (USA) (NYSE:ABX) which is regarded as the largest gold producer of the world gained 2 cents on each of its shares in the previous session to concluded the day at $20.36. The company recently issued its fourth quarter performance results whereby it reported that revenue came in at $2.9 billion, significantly lower than the $4.1 billion that was recorded during the same period last year. The miner suffered a net loss of $2.8 billion in the most recent quarter reported February 13, compared to a loss of $3 billion realized a year ago. Barrick Gold Corporation (USA) (NYSE:ABX)’s profits suffered under the weight of low gold prices and impairment charges.

Alcoa Inc (NYSE:AA) has finally announced the fate of its Point Henry aluminum smelter. The company stated that it will permanently shut down the smelter and two other rolling mills later this year, in August to be precise. At the center of the smelter was fear for job losses and in the past several weeks there have been a lot of chatter around the matter with calls on the company to consider other avenues of dealing with the Point Henry smelter issue. But now it seems that after considering all that there is, Alcoa has come to the conclusion that the smelter cannot become financially viable again. About 500 jobs will be affected by the closure of the smelter, but that will be good for Alcoa which is working hard to return value for its investors at a time when demand and price of aluminum is not rewarding the producer. Shares of Alcoa Inc (NYSE:AA) gained 3 cents each to conclude the previous session at $11.40.

Like it? Share it!

Leave A Response